ANALYSIS : Debunking iron ore freight netbacks

摘要

Global iron ore trading treats bunkerfuel as a significant factor in a variety offormulas, but with oil now low-priced, minerVale has steered away from hedging the oilmaritime product — and miners and steel millsare questioning the complexity bunker fueladds to contract pricing.Vale said Thursday bunker oil derivativelosses totaled $742 million in 2015 while thehedge accounting program for iron ore finesrelated to bunker costs left an overall negativeimpact of $412 million in 2015. It lost $1.5 billionin currency and interest rate swaps.